I agreed with you.... 
i agree with you about today tuesday and wenesday is best for trade but carefull brother dont be rush
- #12,341
- May 9, 2007 2:24am May 9, 2007 2:24am
- Joined Apr 2007 | Status: Senior Principal Trader | 2,699 Posts
- #12,353
- May 9, 2007 3:35am May 9, 2007 3:35am
I'm not sure if you were replying to me or to Gooner, but that has nothing to do with the simple system I presented. It is not something I just slapped together... it is a carefully worked out system that will make profits for WHOEVER uses it religiously while, at the same time, keeping them out of trouble by preventing them from suffering big losses.
Hope that i can work out a method that im comfortable with soon.
I think cable will just ranging between the old down TL (resistance) and 1.9860-ish support until FOMC. And it started to look like a descending triangle. Anyone??
Sorry.. got lost there for a moment. Just though that Gooner finally understand ur method RJF. Anyway its good to see other's method, but one must keep in mind to adjust it to their own plan and trading style so that u can be comfortable with them. Good for u RJF that u have finally found your own method. Wish u a success trading.
Hope that i can work out a method that im comfortable with soon.
I think cable will just ranging between the old down TL (resistance) and 1.9860-ish support until FOMC. And it started to look like a descending triangle. Anyone??
I don't use this system nor the one I presented several pages back.
I also never trade what I 'think' the market is going to do because I don't know, and neither does anyone else.
I strictly look at price action, volume, and momentum, all of which have been virtually non-existent for many hours.
- #12,360
- Edited 6:44am May 9, 2007 5:05am | Edited 6:44am
At 2:15 AM US Eastern Time, the Bollinger Bands widened and you could have shorted GBP/USD (1.9906) and exited at the double bottom (1.9882) on the 10-minute chart for 24 pips minus the spread = 20 pips profit.
Then at 4:40 AM, you could have bought GBP (1.9894). The trade is still live with the highest profit so far of 37 pips minus the spread = 33 pips and still going.
Total profit so far (6:00 AM) = 53 pips. That would make any trader happy.
At 6:40 AM the price reversed from a high of 1.9932 down to 1.9910. Since the Blue MA has touched but not yet crossed below the Red MA, you stay in the trade.
At the 6:50 candle, the price went up to 1.9915 but the Blue MA crossed down below, so you exit the trade at 1.9915 for a 21 pip profit minus the spread = 17 pips.
Total profit on these two trades = 37 pips.
Why not exit the second trade when the profit was 33 pips? Because, as long as the MA's don't cross against you, it could have gone up again and given you even more profit. It didn't work out that way in this trade, but you'll often pick up another 20, 50, or more pips by staying in the trade. You don't want to be sitting there watching all the pips you could have made had you not let FEAR force you out of the trade.
The whole idea is to cut your losses and give your profits a chance to run.
Why didn't we open another trade when the Blue MA crossed below the Red MA? Because the RSI was not pointing down at that point. In fact, it went horizontal and the price stagnated between 1.9915 and 1.9910.
At 7:35 the Blue MA crossed above the Red MA, but the RSI remained horizontal and even went down slightly, so... no trade.
Notice that by following the rules, it was impossible to have lost money in either of the two trades, and there will probably be several more opportunities before the day is over. A 100-pip profit is not out of reach.
Yes! Trading Forex can be fun, stress-free and profitable when you have discipline and the security of allowing your strict rules to decide your actions.
PS. Using this system, DO NOT trade from at least 5 minutes before major economic news until a half-hour to an hour after its release.
Then at 4:40 AM, you could have bought GBP (1.9894). The trade is still live with the highest profit so far of 37 pips minus the spread = 33 pips and still going.
Total profit so far (6:00 AM) = 53 pips. That would make any trader happy.
At 6:40 AM the price reversed from a high of 1.9932 down to 1.9910. Since the Blue MA has touched but not yet crossed below the Red MA, you stay in the trade.
At the 6:50 candle, the price went up to 1.9915 but the Blue MA crossed down below, so you exit the trade at 1.9915 for a 21 pip profit minus the spread = 17 pips.
Total profit on these two trades = 37 pips.
Why not exit the second trade when the profit was 33 pips? Because, as long as the MA's don't cross against you, it could have gone up again and given you even more profit. It didn't work out that way in this trade, but you'll often pick up another 20, 50, or more pips by staying in the trade. You don't want to be sitting there watching all the pips you could have made had you not let FEAR force you out of the trade.
The whole idea is to cut your losses and give your profits a chance to run.
Why didn't we open another trade when the Blue MA crossed below the Red MA? Because the RSI was not pointing down at that point. In fact, it went horizontal and the price stagnated between 1.9915 and 1.9910.
At 7:35 the Blue MA crossed above the Red MA, but the RSI remained horizontal and even went down slightly, so... no trade.
Notice that by following the rules, it was impossible to have lost money in either of the two trades, and there will probably be several more opportunities before the day is over. A 100-pip profit is not out of reach.
Yes! Trading Forex can be fun, stress-free and profitable when you have discipline and the security of allowing your strict rules to decide your actions.
PS. Using this system, DO NOT trade from at least 5 minutes before major economic news until a half-hour to an hour after its release.